
TSE:AQN
This summary was created by AI, based on 29 opinions in the last 12 months.
Algonquin Power & Utilities Corp (AQN) has undergone significant transformation in recent years, primarily shifting its focus from renewable energy to regulated utilities. While the company has faced challenges, including overleveraging and management changes, recent updates suggest a stabilizing outlook. Experts indicate that there is potential for profitability growth, especially with new management steering the company towards a more predictable business model. Analysts recognize the importance of this strategic shift, as AQN is now seen as cheaper compared to peers in the utility sector, making it an interesting play for future growth and income. However, caution remains as some analysts recommend monitoring the company's progress before committing, given its recent history of dividend cuts and restructuring efforts.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock yields 4.3% currently and is trading at around 13.5x forward EBITDA. They are also reducing leverage. The space is seeing lower investor interest in general, which may be why the stock has struggled recently. No reason to sell. Unlock Premium - Try 5i Free
A great way to play the US expansion into renewable power in the coming decade. The valuation has risen, but took a dip during the Texas freeze last winter (was a buying opportunity). The stock is still compelling to buy. Likes it. The renewable stocks ran ahead of themselves in January-February, pricing in too many years of growth, but this correction was healthy. Valuations are still not cheap, but long-term returns still look good. Also consider Boralex and Northland Power.
AQN vs. BEP.UN Likes it. Leveraged to renewable infrastructure build in the US. Very steady utility business. Better choice than BEP.UN at this time, based on valuations.